Global Bond Selloff Hits U.S., U.K., Japan, France Amid Fiscal Concerns

Long-term government bond yields are surging globally amid investor concerns over fiscal sustainability and monetary policy uncertainty in major economies, including the U.S., UK, Japan, France, and Germany. The U.S. 30-year Treasury yield surpassed 5%, while Japan’s 30-year bond yield hit a record high driven by inflation and political uncertainty, particularly following the resignation announcement of a key fiscal consolidation supporter in Japan's ruling party. The UK faces acute pressures with 30-year gilt yields reaching multi-decade highs amid doubts about its fiscal management and potential IMF bailout speculation. European bonds, including German and French debt, are also experiencing significant yield increases due to political instability and deficit worries, contributing to broader financial market volatility. This global bond selloff is tightening financial conditions, impacting risk sentiment and private sector investment, while stock futures show cautious gains amid lingering uncertainty. Despite strong demand for some government bonds, rising yields reflect market skepticism about government spending plans and inflation risks across advanced economies.